ISLAMABAD: Despite increasing government efforts to promote Bitcoin and digital assets, both the State Bank of (SBP) and the Ministry of Finance (MoF) reaffirmed on Thursday that cryptocurrencies remain banned in Pakistan, with all related transactions deemed illegal under existing regulations.
The conflicting signals emerged during a meeting of the National Assembly’s Standing Committee on Finance and Revenue, where officials acknowledged that while a Crypto Council had been formed to explore digital asset policies, the legal status of cryptocurrencies remains unchanged.
Government’s Contradictory Stance on Cryptocurrency
Finance Secretary Imdadullah Bosal clarified that despite Prime Minister Shehbaz Sharif’s recent executive order establishing a Crypto Council—chaired by the finance minister—there is no legal framework yet to legitimize cryptocurrencies.
“There will be a legal framework only when the government formally takes a decision, but the current legal status is that crypto is not legal tender in Pakistan,” Mr. Bosal said. He admitted that no parliamentary approval exists for cryptocurrency use, leaving investors in a regulatory gray area.
Budget Announcement and IMF Talks
Mr. Bosal also confirmed that the federal budget would be presented on June 10, with ongoing virtual discussions with the International Monetary Fund (IMF) regarding fiscal measures. Additionally, he revealed that the Asian Development Bank (ADB) is expected to approve an $800 million loan for Pakistan on June 3.
Committee Members Express Confusion Over Crypto Policy
Lawmakers raised concerns over the government’s inconsistent approach toward cryptocurrency.
- Mirza Ikhtiar Baig questioned why the public was being encouraged to invest in crypto while it remains banned, warning of severe repercussions for unsuspecting investors.
- Mohammad Mobeen criticized the government for engaging with Bitcoin policies instead of the SBP, pointing out that while crypto is deemed illegal, electricity has been allocated for Bitcoin mining operations.
- Shahram Tarakai warned that foreign exchange reserves could rapidly deplete if crypto transactions go unchecked, leaving the government in a difficult position.
Illegal Hawala and Unregulated Digital Transfers
Some committee members feared that illegal hawala transactions might be replaced by unregulated crypto transfers, exacerbating financial risks. Questions were also raised about whether crypto mining would be controlled by the government or private sector.
SBP Reiterates Ban on Cryptocurrencies
Sohail Jawad, an executive director at the SBP, reiterated that the central bank’s 2024 directive declaring Bitcoin and other cryptocurrencies illegal remains in effect.
“The Financial Monitoring Unit (FMU) continues to refer crypto-related cases to law enforcement agencies for action,” he said.
Jawad noted that while a national working group on digital currency has been formed and recommendations were shared with the Pakistan Crypto Council (PCC), only El Salvador has fully legalized cryptocurrency—and even it is reconsidering its stance.
The SBP does not recognize crypto assets, which operate on decentralized systems outside traditional banking regulations. In 2022, the central bank issued a public advisory warning against cryptocurrency trading.
Push for Regulation Amid FATF Compliance Concerns
The committee discussion was partly triggered by a bill on digital currency regulation proposed by MNA Sharmila Farooqi, who argued that Pakistan must regulate crypto to prevent money laundering, especially after exiting the FATF grey list.
The Pakistan Crypto Council (PCC), officially launched in March 2025, aims to integrate blockchain technology and digital assets into Pakistan’s financial system.
Strategic Bitcoin Reserve Unveiled in Las Vegas
The debate coincided with the unveiling of Pakistan’s first government-backed Strategic Bitcoin Reserve by Bilal Bin Saqib, the newly appointed Special Assistant to the Prime Minister on Crypto and Blockchain.
The announcement was made at a high-profile event in Las Vegas, attended by:
- US Vice President J.D. Vance
- Eric Trump and Donald Trump Jr. (sons of former US President Donald Trump)
A “Rebranding of Pakistan”
A finance ministry statement described the event as “not just a policy moment—but a rebranding of a nation.”
Speaking at the event, Bilal Bin Saqib declared:
“Pakistan is being reborn as a forward-looking hub of digital innovation—powered by its youth, sharpened by necessity, and led by a new generation of tech statesmen.”
He also announced a national Bitcoin wallet to hold digital assets as a sovereign reserve, signaling Pakistan’s long-term commitment to decentralized finance (DeFi).
Trump’s Role in India-Pakistan Relations
Saqib thanked Donald Trump for his role as a peacemaker in recent India-Pakistan tensions and praised his advocacy for crypto adoption.
Conclusion: A Legal Limbo with High-Stakes Potential
While the government appears to be pushing for crypto adoption, regulatory uncertainty persists. The SBP and MoF maintain that cryptocurrencies are illegal, yet high-profile initiatives like the Strategic Bitcoin Reserve suggest an inevitable shift toward digital finance.
The coming months will be crucial as Pakistan navigates:
✔ IMF negotiations
✔ Budget constraints
✔ Crypto regulation debates
✔ Global blockchain integration
Will Pakistan fully embrace cryptocurrency, or will regulatory hurdles keep it in a legal gray zone? The answer could reshape the country’s financial future.
What are your thoughts on Pakistan’s crypto dilemma? Share your views in the comments!